NICB Warns Consumers to Watch for Flood-Damaged Vehicles During Peak Flood Season
NICB’s Free VINCheck Service Verifies Vehicles for Millions of Buyers Each Year
OAK BROOK, IL, August 13, 2026 – As storms and severe flooding continue to impact communities across the United States, the National Insurance Crime Bureau (NICB), the insurance industry’s association dedicated to preventing and combating insurance crime and fraud is urging consumers to exercise caution when shopping for a used vehicle. Flood-damaged vehicles frequently reenter the used car market following major disasters, sometimes hundreds of miles from where the flooding occurred and often without proper disclosure.
“Every major flooding event creates an opportunity for criminals to profit at the expense of consumers,” said David J. Glawe, President and CEO of the National Insurance Crime Bureau. “A flood-damaged vehicle may look perfectly normal on the outside, but hidden damage can create serious safety hazards and expensive repair bills in the following months or years. Before purchasing any used vehicles, consumers should take advantage of every resource available to ensure they’re making an informed decision.”
Floodwater can cause extensive and lasting damage to a vehicle’s electrical systems, engine, transmission, brakes, and safety features. Flood-damaged vehicles declared a total loss should carry a salvage or flood title, but dishonest sellers routinely conceal that history through superficial repairs and "title washing" before reselling to unsuspecting buyers.
As of August 2025, CARFAX estimates that as many as 530,000 flood-damaged vehicles were on U.S. roads.
NICB recommends consumers take the following precautions before purchasing any used vehicle:
- Run the vehicle’s VIN through NICB’s free VINCheck service to determine whether it has been reported as a salvage vehicle or total loss by participating NICB member carriers
- Obtain a vehicle history report and carefully review the vehicle’s title history
- Have the vehicle checked by a reputable technician or repair facility before completing any purchase
- Check for warning signs of flood damage, including musty odors, water stains, rust, silt or mud, mismatched upholstery, and moisture inside the vehicle’s parts
- Be cautious of deals that appear too good to be true
NICB’s VINCheck is available free of charge and empowers consumers to determine whether a vehicle has been reported as stolen and unrecovered or declared a salvage or total loss by participating NICB member insurers covering more than 92% of the market. Originally developed following Hurricane Katrina, VINCheck facilitates millions of vehicle verifications each year. As of July 31, 2026, VINCheck processed nearly three million vehicle checks.